Economic Survey 2023 Updates: Finance Minister Nirmala Sitharaman tabled India’s annual pre-budget economic survey in Parliament today. The Economic Survey has pegged India’s GDP growth at 6-6.8% for FY24 under the baseline scenario. This would be the slowest in three years. Nominal growth is likely to be projected at 11% for 2023-24. While the Survey cautioned about above-target inflation, widening current account deficit, and rupee depreciation, it maintained that India will remain the fast-growing economy in the next financial year.
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“According to broad status in employment, the share of self-employed increased and that of regular wage/salaried workers declined in 2020-21 vis-à-vis 2019-20, driven by trend in both rural and urban areas,” said the Economic Survey 2023.
“RBI forecasts elevated domestic prices for cereals and spices in the near term owing to supply shortages. Milk prices are also expected to spike reflecting high feed costs. In general, climate across the world has become increasingly erratic, further fortifying upside risks to food prices,” stated the Economic Survey 2023.
The Covid-19 crisis significantly impacted the residential real estate market. The Housing Price Index (HPI) monitored by the National Housing Bank. Out of the 50 cities, 46 cities registered an increase in the index, whereas 4 cities experienced a decline, on an annual basis. All of the eight major metros of the country witnessed an annual increase in the index, according to the Economic Survey 2023.
On the external front, risks to the current account balance stem from multiple sources. While commodity prices have retreated from record highs, they are still above pre-conflict levels. Strong domestic demand amidst high commodity prices will raise India’s total import bill and contribute to unfavourable developments in the current account balance. These may be exacerbated by plateauing export growth on account of slackening global demand. Should the current account deficit widen further, the currency may come under depreciation pressure.
Budgeted capital expenditure rose 2.7X in the last seven years, from FY16 to FY23, re-invigorating the Capex cycle. Structural reforms such as the introduction of the Goods and Services Tax and the Insolvency and Bankruptcy Code enhanced the efficiency and transparency of the economy and ensured financial discipline and better compliance.
On current trend, it appears that the full year’s capital expenditure budget will be met. A sustained increase in private Capex is also imminent with the strengthening of the balance sheets of the Corporates and the consequent increase in credit financing it has been able to generate, said the Economic Survey 2023.
According to the Economic Survey, Bank credit growth will remain brisk in the coming financial year. Benign inflation and moderate credit cost will impact bank credit. Credit growth to small businesses remarkably high at over 30.5% in January-November, 2022
The country's unemployment rate fell from 8.3% in July-September 2019 to 7.2% in July-September 2022.
Credit disbursal, capital investment cycle, expansion of public digital platform and schemes like PLI, National Logistics Policy, and PM Gati Shakti to drive economic growth, says Economic Survey 2023.
India is third-largest economy in the world in PPP (purchasing power parity) terms; 5th largest in terms of exchange rate. The economy has nearly recouped what was lost, renewed what had paused; re-energised what had slowed during the pandemic, said the Economic Survey 2023.
India to remain fastest-growing major economy in the world. 6.8% inflation for current fiscal not high enough to deter private consumption or low enough to weaken investment. Borrowing cost may remain 'higher' for longer period; entrenched inflation may prolong tightening cycle, says Economic Survey
India withstood extraordinary set of challenges better than most economies and the country's recovery from pandemic was relatively quick, said the Economic Survey 2023.
Economic Survey 2023 Live: India's recovery from pandemic was relatively quick; growth, pick up in capital investment, says Economic Survey.
The widening current account deficit may pose a risk to and put pressure on the rupee, according to the Economic Survey 2023, adding that a challenge to rupee depreciation persists with the likelihood of further interest rate hikes by the US Fed.
India on Tuesday forecasted that its economy will grow 6% to 6.8% in the FY24, down from 7% projected for the current financial year. The government's annual Economic Survey report said its baseline scenario for growth for 2023/24 was 6.5%, with nominal growth, which accounts for inflation, forecast at 11%. Gross domestic product is expected to grow 6.5% in the fiscal year starting April, compared with the 7% expansion estimated for the current year.
Domestic demand, capital expenditure pick up to help boost growth, according to the Economic Survey 2023.
Risks to current account balance stem from multiple sources, says Economic Survey 2023.
FM Sitharaman has tabled the Economic Survey 2023 in Parliament. The Survey has pegged GDP growth for current financial year at 7%.
India's FY24 GDP growth is seen at 6-6.8%. Baseline Nominal GDP growth is pegged at 11%.
Finance Minister Nirmala Sitharaman has tabled Economic Survey 2023 in Parliament.
The survey is prepared by the Economics Division of the Department of Economic Affairs (DEA) under the guidance of the Chief Economic Advisor (CEA). The Finance Ministry first presented the Economic Survey of India for the first time in 1950-51. At that time, it was presented along with the Union Budget. However, it was de-linked from the Budget in 1964 and unveiled in advance in order to provide a context of the latter.
CEA V Anantha Nageswaran will address a Press Conference on 31st January 2023, at 2:00 PM in New Delhi after the presentation of Economic Survey 2022-23 by FM in Parliament. The livestream can be watched on Press Information Bureau (PIB's) YouTube channel.
As president Droupadi Murmu's address to the joint session of Parliament concludes, all eyes are now on Finance Minister Nirmala Sitharaman who will table Economic Survey 2023 shortly.
Addressing the media ahead of the Parliament's Budget session, PM Narendra Modi said that the Union Budget will aim to fulfill the wishes of the common man. He also said that India is being seen as a bright spot by the world and FM Nirmala Sitharaman's Budget 2023 will look to work in that direction. FM will table the Economic Survey 2023 in Parliament shortly.
Economic Survey, tabled by the Union Finance Minister every year a day ahead of the Union Budget, is an assessment of the state of the economy in the ongoing financial year. The Economic Survey provides a detailed analysis of the performance of the individual sectors and also projects GDP growth and other economic indicators for the upcoming fiscal.
“In today's global circumstances, not only India but the entire world is looking at India's budget. Amid the unstable global economic situation, India's budget will attempt to meet the hopes & aspirations of the common citizens, the ray of hope being seen by world glows brighter-for this, I firmly believe that Nirmala Sitharaman will make all efforts to meet those aspirations,” PM Modi said ahead of the presentation of Economic Survey 2023.
After the Economic Survey is presented by CEA V Anantha Nageswaran, the documents of Economic Survey 2023 can be downloaded from the government’s official Budget website.
Providing direction to the Union Budget 2023, the Economic Survey is a crucial statement on the economic growth path in the current financial year Policy suggestions on key economic issues also form part of the Economic Survey every year.
The livestream of the Economic Survey can be watched on the government’s official channels. Additionally, Sansad TV, PIB India will also live stream the release.
After Finance Minister Nirmala Sitharaman tables the Economic Survey 2023 in Parliament, Chief Economic Advisor V. Anantha Nageswaran will address a press conference live at 2 PM to explain the findings of the Survey, its theme, and the forecast in detail.